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Tuesday, February 13, 2007

SRF Limited : Value Pick

SRF Limited is a textiles and nylon fibre manufacturing company with nine months EPS at rs. 36 approx. At cmp of nearly rs. 160, this stock is definitely a Value Pick. The year's low was 136.50 and high was 372.70. The company also stands to gain from carbon credits. It is a very attractive buy at current levels and the current weakness in the overall markets can be used to accumulate this stock. Recent pieces of news from the company: SRF Ltd has informed BSE that the Board of Directors at its meeting held on October 27, 2004 inter-alia, had approved capital expenditure proposal for Modernization and Expansion of capacity of Industrial Synthetics Business (now Technical Textiles Business) at Manali (Madras) and Gwalior.The Company has now informed that, following projects have been commissioned:1. Expansion of capacity of Nylon Tyre Cord Fabric at Gwalior— from 10000 MTPA to 17000 MTPA2. Expansion of Poly and Spinning capacity at Manali — from 11000 MTPA to 25400 MTPA.SRF Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 20, 2007 has approved the following projects:1. Upgradation of R&D facility and pilot plant at a total cost of Rs 14.40 Crores.2. Manufacturing of a new fluoro speciality chemical at a total cost of Rs 14.35 Crores.

34 comments:

An excellent pick superstar. I feel SRF is hammered purposely due to some operators. When this starts its journey it should only go one way that is towards the northpole leaving santa behind. Cheers !! *****

good pick again, the nine month EPS stands @36,given devidend @30%.But the EPS given is basic and not diluted, just need to make sure tht there are no /warrants etc outstanding convertible into equity shares.Again wahts ur take now on the scripts like : Lok Hsng/Yash Mgt ...Thnk u had advised a stoploss @12.50 in Yash.Shld one still hold on to it or book profits.Plz advise...

Yes, I am very upbeat about SRF ltd. I think downside is limited and upside could be HUGE. I am yet undecided about Lok Housing and am holding it still. Real estate stocks have been under pressure due to a growing perception that real estate rates have peaked and property prices have to correct downwards sooner or later. But Lok is one of the cheaper valued stocks in this sector. The trigger for this stock could be coming out of T2T. About Yash management, I gave a strict stop loss of 12.50 for that stock. One should have got out of Yash at 12.5 and switched to SRF Ltd. to play safe.

hey superstar,too good a pick man.Even today the stock is below its 30/150 day average of 200 and wid the kind of valuations it is likely to go very high.Wht i feel is tht frm monday we will once again start rallig and this was just one of those routine corrections lookin at the kind of breadth/volumes depicted yesterday wht do u say, how wld the mkts move frm here on.

Dear Vijay,I had already given Chemplast as a buy in one of my blogs here (at 7.70 levels) and also at moneycontrol. After which it had rallied to 10.30 levels.

Dear Naveed,I had a cursory look at Ferro alloys and the earnings of that company are nothing to go ga ga about. There are better buys available in the mkt.

Dear Jig,I had already predicted the dip in the market of early this week as a GOLDEN OPPORTUNITY to buy in one my blogs with that heading. I am bullish about next week and if you go through my astro site: http://superstarastro.blogspot.com you will know the predictions for next month for individual signs.

Dear Nikhil,You bought raj rayon at an exhorbitant price. The promoters have been selling their holdings in the last one year and it is only around 23% now. The eps figures are not great. At cmp. I would say SALONA COTSPIN is a much better BUY than raj rayon. Cheers!

Hi Yogesh,I used to track Manali Pet before the split happened. Now that the face value has been reduced to rs.5 for that stock, I haven't tracked it actively. So, my views are neutral on that stock at cmp. Cheers!

superstar..thanxs for inviting to ur website i have couple of stocks which i want ur opinion if i could exit and enter in srf and madhav marbles...hindalcosreinthimfutmtnlhugtelactually i have incurred losses n these above i am not a prolific trader. i have taken ur recommendation and bought salcot, gupsyn,kovlak and gesco.. plz advise

hi superstarthanxs fr inviting..well i have been following ur recommendations.. i have some stcks which i have it for sometime with not much movement do u feel i could exit these...hindalco bought at 200himfut 21gujnresreintmtnlhugtelashleywell truth i have lost money in these.. but i have invested in kovlak, gupsyn,salcot, and gescoafter ur recommendation.. well do u think i should liquidate and invest in srf, and madhav marbles.. plz advise..

Dear Kavgupt,Tutis was earlier known as Amex info tech and had a name change in Oct,2006. While the current eps figures look good on paper, I have my doubts. Why is the promoter holding so low at only 13% if the company is doing so well? I would be cautious. Cheers!

Dear Ravchin,Out of the stocks you mentioned, Madhav, Gupta synth, SRF, Salona Cotspin can be held for long term. Rest can be liquidated. Also, one should be cautious in previously high flying real estate stocks as there are fears in the market that real estate prices have reached their peak and may crash anytime.

If u check promoter holding In AFTEk or Orchid chem is also very low . Infact i think promoters are buying from the open market & keeping them in corporate bodies form . something is cooking . I have information some big mumbai investor has bought shares in it . I think the stock is graet for 1 year hold for patience & value investors only

hey superstar i agree to ur comment tht reality prices might have reached out but frankly speakin i donot see ni major corrections/crash happening in the property prices.U might have a situation wherein the prices may stabalise and not move uo much but a big correction doesnot seem realistic. If u see the survey conducted by CNBC and shown yesterday on their programme High rise they are stiil sayin that by this year end there wld still be shortage of property in cities like mumbai.So if these stocks correct a bit more i wld not actually be a bad idea to have a look at them .The same applies to banks also whch have corrected quite a bit.Whts ur call on the 2 sectors if u take a 6 months to a years view.

Dear My world,Thanks for writing in. I know that the entire market is in pretty bad shape right now and most of our portfolios are in the red. But the price at which SRF is trading right now looks very attractive to me. I think if even on Monday the markets continue to be weak and if SRF tests its year's low of 136, then I personally would like to average it at that price. I will hold on to this stock for long term. The company had done a buy back at a price of 250 some time back and I'm sure it will go above that level once the current bearish market trend reverses. All we can do right now is to keep patience.

PPle need to be very cautious in this counter. Agreed the valuations in terms of PE multiples are very cheap.But if that is he truth why is the stock not movin up. There have been romours that the company might increase the equity base by issuing shares through the private placement route which might actualy correct the price/PE ratio...Do u guys have ni info on this?

well i'm a very small investor and have also incurred few losses in recent past pl help me .i have read a lot abt u on moneycontrol.com.my email id is Brokenangel379@rediffmail.comonce again pl help me.thank u.

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All information posted on this web site has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Under no circumstances is this an offer to sell or a solicitation to buy securities discussed on this site. Past performance is no guarantee of future success. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. I have positions in some of the companies discussed. All data, information and opinions are subject to change without notice. (c) 2007 All Copyrights belong to Superstar